Canadian banking giant Toronto-Dominion Bank (TD) on Thursday posted mixed fiscal fourth quarter earnings results and said it would acquire New York-based asset manager Epoch Holdings for about $668 million in cash.

The Toronto-based company reported fiscal fourth quarter net income of C$1.6 billion, or C$1.66 per share, compared with C$1.6 billion, or C$1.68 per share, in the year-ago period. Last year’s quarter had fewer shares outstanding. Excluding special items, adjusted profit was C$1.83 per share.

Revenue rose 4% from last year to C$5.89 billion.

On average, Wall Street analysts expected a smaller profit of C$1.82 per share, albeit on higher revenue of C$5.94.

In a separate announcement, TD said it has entered into an agreement to acquire asset manager Epoch Holdings (EPHC) for $28 per share in cash, or about $668 million. That asking price represents a 28% premium over EPHC’s Wednesday closing price of $21.91 per share. TD noted the move will “broaden our offer for institutional and retail clients and will immediately strengthen our U.S. wealth business.”

TD Bank shares posted small losses in premarket trading Thursday.

The Bottom Line
We have been recommending shares of Toronto-Dominion Bank (TD) since Aug.31, when the stock was trading at $81.29. The company has a 3.70% dividend yield, based on last night’s closing stock price of $83.22.

Toronto-Dominion Bank (TD) is a “Recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.